Photo: iStock
Photo: iStock

With unsold inventory and production cuts reflecting an automotive market slowdown, the Indian auto industry is upset with the National Democratic Alliance government’s ambitious targets for bringing in electric mobility in the two- and three-wheeler segments.

Auto-industry body the Society of Indian Automobile Manufacturers (SIAM) has said the proposal by the government’s policy think-tank Niti Ayog to ban sales of gasoline and diesel three-wheelers by 2023 and permit only electric two-wheelers in the sub-150cc category by 2025 will disrupt the industry, The Times of India reports.

Both SIAM and the Confederation of Indian Industries (CII) have said they do favor electric mobility but expressed concern over the haste with which the government was pushing it and called for consultation with industry stakeholders.

SIAM has argued that at present neither the frontline manufacturing industry nor the component suppliers have proper experience or expertise in electrical vehicles to make a successful switch in a couple of years.

Some industry experts pointed out that the costs involved in switching to electric were a major hurdle. They also cautioned against hasty localization and called for a practical approach without disrupting the auto industry.

The Indian auto market currently is in the process of switching over to more stringent Bharat Stage-VI emission norms, and SIAM claims the industry has cumulatively invested close to 800 billion rupees (US$11.51 billion) for that purpose.

The recent slowdown in the market has only added to the challenges. Many auto companies are facing a steep rise in unsold inventories and resorting to production cuts. The market is unlikely to pick up unless the forthcoming monsoon season is bountiful and demand during festival season is strong.

Also Read: India’s Maruti cuts output amid weak demand

Join the Conversation


  1. The other day, while I was at work, my sister stole my apple ipad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views. I know this is totally off topic but I had to share it with someone!

  2. I’ve been browsing online greater than three hours these days, but I by no means found any interesting article like yours. It is lovely value enough for me. Personally, if all web owners and bloggers made just right content as you probably did, the web shall be a lot more useful than ever before.

  3. You really make it seem so easy along with your presentation but I find this matter to be actually one thing which I feel I would by no means understand. It kind of feels too complicated and very vast for me. I am taking a look ahead in your subsequent publish, I will attempt to get the cling of it!

  4. Thanks a lot for sharing this with all folks you actually recognise what you’re talking about! Bookmarked. Please also seek advice from my site =). We could have a link alternate contract among us!

  5. Thanks for any other fantastic post. The place else may anyone get that kind of info in such an ideal way of writing? I have a presentation subsequent week, and I am at the look for such information.

  6. I’m not sure why but this weblog is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I’ll check back later and see if the problem still exists.

Leave a comment

Your email address will not be published. Required fields are marked *